The Great DepressionTopic: the great depressionQuestion: How did the great depression affect americans?Thesis statement:The great depression affected americans because it destroyed their economy. Millions of families lost theirs savings as many banks collapsed in the 1930’s.The Great Depression was the worst economic drop of all times in the industrial world1. The Great Depression began because of a stock market crash in 1929 and came to end ten years later in 1939, around 15 million americans were unemployed and about half of the American banks failed. It was one of the darkest era in the United States.When the stock market underwent rapid expansion, the production had been declined and unemployment had risen, leaving the stock prices higher
In October of 1929, the Dow Jones Industrial Average fell 25% in four days, this is defined as the Stock Market Crash of 1929. Billions of dollars were lost, countless investors were crushed by the amount of money they lost, and a plethora of people were forced into debt. The Stock Market Crash intensified the Great Depression, which was was a time of economic calamity in America in the 1920’s and 1930’s. The Great Depression was caused by the consolidation of overproduction, false prosperity, unemployment, banking crises, and the stock market crash of 1929. The overproduction of farm products, due to improved technology, and false prosperity caused deflation, which was a reason for the Great Depression.
Homelessness has existed since the beginning of civilization, usually because a lot of people at the time are too poor to buy a house. As time goes on, the rate of homelessness rises as the population rises. Homelessness then was mostly caused by a family’s history of being homeless, drug abuse, mental disorders, and tyrannical leaders forcing his people into poverty. In modern times, several organizations are now trying to end homelessness by building cheaper housing projects more affordable to the poor and homeless shelters; these projects usually cost a fair amount of money.
High mortgage rates destroyed the value of mortgage-backed loans, which is the primary asset of the savings and loans association. The fixed-rate loans were sold at a loss in order to balance withdrawals. That asset liability mismatch was identified as the primary cause of the savings and loan crisis. Jobs were lost and unemployment rose from around 7.5% to more than 10%. The recession caused a loss of 2.9 million jobs, representing a 3% drop in payroll employment.
It bundled up home loans from states like California, Florida, Nevada and Arizona,etc which became some of the worst victims of the US housing crash, consistent with his prediction.They expected 123 hedge funds to decline in the future. On the other hand, Goldman Sachs was unethically profiting at the expense of the same clients it was trying to lure in million dollar mortgages which they knew would fail. In its defence, it claimed that if the investors had not liked the underlying securities they could have turned away from making the investment and that it was home owners fault that they took loans they could not afford. It was confident that it had done nothing illegal; neither was it trying to take advantage of the decline in housing market. However Goldman Sachs had been terribly wrong .Honesty is expected by any person or institution.
Economic recession in 1960s to 1980s are still like the yesterday’s nightmare for most people in early twentieth century. During this period, , a big trade deficit was caused because more foreign goods floated into US market than capital floated from the US to developing countries. This phenomenon made the economy inside the US face a hard time. Meanwhile, American citizens began to pursue “one of the country’s most cherished myths, the American Dream-a fantasy of social mobility enabled by America’s putative rejection of the aristoristocratic heirarchy structuring the Old World societies of our ancestors”(Deitchman). Lots of people wanted to go from lower class to upper class in order to escape from the life which was becoming harder and harder.
Why are Fannie Mae and Freddie Mac in conservatorship? In September 2008, as Fannie Mae and Freddie Mac became financially troubled during the financial crisis, both Fannie Mae and Freddie Mac were placed in conservatorship in a dramatic move by the U.S. government. As the U.S. economy weakened, both housing and mortgage markets experienced extreme drops in prices. This conservatorship is to help re-establish confidence in both companies and their abilities to perform their mission in providing affordable housing for
We were known as one of the richest nations. Unfortunately things went dramatically wrong in 2008. The bank scandal came to light that they had been given companies and investor’s huge loans that the companies could not be paid back. Companies went bankrupt and we went into a recession which was worse than the one seen in the 70’s and 80’s. Emigration and unemployment escalated like we had never seen before.
A housing bubble was created by banks liberally mortgaging out homes to anyone no matter their credit and bundling mortgages together and selling them to other banks. Because of how they were bundled their credit ratings never reflected the actual risk involved; this practice was unethical but profitable until the system collapsed in 2008 and caused massive losses for both banks and homeowners. The losses were so drastic that Congress voted to bail out several of the banks at the expense of the taxpayers, many of whom were unemployed and facing foreclosure. The economy today is still recovering as interest rates and unemployment continue to return to
Following the separation from the Cadbury Sweppes, DPS was hard hit by the financial crisis which rocked the American economy, leading to slumping sales and subsequently limiting spending. Despite the slow sales and dwindling economy, DPS used Nielsen’s research analysis of the 1980’s economic crisis to pump in heavy advertising and marketing. One of the key areas where DPS made a big leap was its brand development. DPS engaged in strengthening non-cola drinks segment, with a firm believe that customers are falling out with cola drinks. Introduction of new brands including; Dr Pepper, Sunkist, and A&W, DPS saw record sales growth of 10 percent in 2010, indicating the new strategy to fuel advertising and brand marketing had begun to pay off.